Buying a new home is a milestone in anyone’s life, and making the right choices is important. Typically, a new house is built to the construction company’s specifications, and is handed over in pristine condition and ready to move in. It will have certain warranties for workmanship and materials, and the builder would carry out any minor repairs during that time. The advantage of buying a new home is that it has no wear and tear, and has not been lived in before. Although a home is designed to last for decades, time inevitably means maintenance and costly repairs, and much like a new car that has never been driven, there is an element of newness about a freshly painted home that is ready to be occupied.
Display homes
Buying a display home is a very attractive proposition. They are all built to high standards, well-maintained, and are leased for a fixed amount of time. Add to that the appreciation factor, and the tax deductions, and buying a display home kind of makes sense.
How does it work?
Typically, the developer will set out to build X number of houses, probably a mixture of 4 or 5 styles and sizes, on a particular piece of land. The development will begin with the display homes, as these are the units that will help to sell the development. Once they have been constructed and fitted out with the right furniture and fittings, they are used in a display role, for potential buyers. The builder would eventually like to sell the display home, but not until the last unit is sold, and if a person buys the display home at any time, it would be sold on a lease-back option, which allows the builder to lease the property from the new owner for a fixed period of time. After which, the display home is handed over to the new owner in pristine condition. If a person were to buy one of the display homes Perth has to offer for example, early in the project, they would be able to lease the home in the city for a year or two, depending on the size of the development.
The benefits of a display home
Obviously, the display home will look impeccable, with smooth landscaped lawns and immaculate borders, as one would expect with a show home. The interior holds even more advantages, with heating – air conditioning systems, major appliances and security systems, all installed and in good working order. This alone is worth thousands of dollars, not to mention the fitted kitchen and bedrooms, curtains, blinds and carpets, giving the new owner so much for their money.
The downside
There’s only one really, and that is the new owner cannot move in until the lease period has expired, but he or she is receiving a good rental for the whole of that period, which makes it a good investment. The condition of the home is always top-notch, as one would expect to see with a show home, so, if one is considering a new dwelling, buying a display home is a wise choice.